Prescott: development agencies for the regions

Labour's Policy for the Regions Takes Shape

The Government hopes the bodies will rebuild local economies and create jobs, following the example of the Scottish and Welsh Development Agencies. Under the Conservatives, the agencies attracted million of pounds in foreign investment.

While in opposition, many Labour MPs protested that the English regions suffered as a result. But now Deputy Prime Minister John Prescott wants the Scottish and Welsh agencies to act as forerunners of the eight, English regional assemblies.

It's thought he wants a two-stage process -beginning with development agencies guided by boards of councillors, businessmen, academics and training specialists. This would then be followed by elected regional chambers.

The Conservatives say this will lead to more red tape and an unnecessary tier of local government. But in a keynote speech last week Mr Prescott said the development agencies were a priority.

"English regions have suffered huge disadvantage over the years and it is absolutely vital that we give the regions the tools to do the job themselves," he said.

Mr Prescott stressed he did not want them to be "an outpost of Whitehall" but to act as an link between central and regional priorities. He hoped the agencies would drive regeneration in towns, cities and country areas and by targeting the cash he was convinced they would get better value for taxpayers' money.